Some customers for certain types of projects require you to hold back 10
percent of your total invoice or 10 percent of each invoice (invoicing only for
90 percent of the contract price) until you've completed the project
satisfactorily. After the job is complete and it's agreed that you can
collect the remaining 10 percent, you then create an invoice to the customer
for the balance.
The procedure described here for handling retainage will not only help you
track who owes you for retention, but also track how much they owe. In
addition, it helps to track the retention on your books as an asset until the
customer pays the balance.
To do this task
Set up an account for
Create an item for
Include the retention on
Invoice the customer for the